NEW YORK, July 30, 2003 (PRIMEZONE) -- Abbey Gardy, LLP commenced a Class Action lawsuit in the United States District Court for the District of Delaware (Civil Action No. 03-738) on behalf of a class (the "Class") of all persons or entities ("Noteholders") who hold 7% convertible subordinated notes due April 1, 2005 ("Notes") sold by Avatar Holdings Inc. ("Avatar" or the "Company") (Nasdaq:AVTR).
The Complaint alleges that defendants violated Sections 12(a)(2) and 15 of the Securities Act of 1933. A copy of the Complaint is available from the Court or Abbey Gardy, LLP. Please connect us at 1-(800) 889-3701 or by E-mail at nkaboolian@abbeygardy.com
The Complaint names as defendants Avatar, Gerald D. Kelfer, Avatar's Chief Financial Officer, President and Vice Chairman, and Juanita I. Kerrigan, Avatar's Vice President and Secretary. Avatar is a corporation primarily engaged in real estate operations in Florida and Arizona. The case is brought in connection with Avatar's July 1, 2003 announcement of its redemption of $60 million of the $94,429 million in aggregate principal amount of Notes outstanding. The Notes were convertible, at any time prior to maturity, to shares of Avatar common stock at a conversion price of $31.80 per share or Avatar could redeem the Notes at its option at specified prices. Because Avatar is a real estate company, the true value of its real estate holdings is critical to Noteholders in making a decision whether to have their Notes redeemed for cash, or whether to exchange those Notes for shares of Avatar's common stock. The Company's public documents state that its real estate is valued at the lower of cost or market value. Plaintiff alleges that Noteholders are unable to make an informed decision whether to convert their Notes to Avatar common stock or allow them to be redeemed because defendants failed to disclose the basis on which the Company's land inventories are valued. The Complaint seeks disclosure of this material information or damages that flow from the failure to disclose it.
Plaintiff seeks to recover damages on behalf of all those who hold the Notes. If you hold the Notes you may wish to join in the action to serve as lead plaintiff. If, you wish to serve as a lead plaintiff you may, no later than September 27, 2003 request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian Esq. of Abbey Gardy, LLP at (212) 889-3700 or 800-889-3701. Or E-mail nkaboolian@abbeygardy.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca